In the second quarter of 2021, banks granted 67,000 mortgage loans worth over PLN 22 billion. Taking into account the sector’s results in the first half of the year, at the end of the year, the financing of housing by banks will exceed PLN 80 billion, which would entail granting at least 240,000 new housing loans, said Jacek Furga from the Polish Bank Association.
“The results of lending in the second quarter of 2021 were breaking new records. The number of over 67 thousand newly granted loans was a record result since the subprime crisis and was higher by over 17% compared to the first quarter of this year. However, in terms of the value of loans granted, the sector banking achieved the all-time result with the amount of over PLN 22 billion “- we read in the report of the Polish Bank Association, included in the report published on Wednesday by AMRON-SARFiN.
Banks are financing the boom in the housing sector
– Taking into account the results of the first half of the year, including, in particular, the dynamics of lending growth in the second quarter of 2021, a record result of the banking sector in housing financing in 2021 in the amount of PLN 80 billion can be announced without risk. Achieving such a result would mean granting at least 240,000 new mortgage loans, said the chairman of the Polish Bank Association’s Real Estate Financing Committee during the Wednesday press conference.
The data contained in the AMRON-SARFiN report show that the average value of a housing loan has increased. In the second quarter of 2021, it amounted to nearly 330 thousand. zloty. The share of loans with a value of up to PLN 300,000 decreased. PLN, while the share of those whose value exceeds 500,000 has increased. zloty.
At the same time – according to the data of the Polish Bank Association – Poles borrow with an increasing share of their own contribution. With regard to the 2nd quarter of 2020, in the 2nd quarter of this year. the share of loans with a LtV ratio (showing the ratio of the loan amount to the total value of the property) higher than 80% fell by almost 9 pp, to a level below 30%.
Housing loans – increase in amounts
The increase in the average loan amount is the result of an increase in apartment prices. In the second quarter of 2021, an increase in the average transaction price of 1 sq m of usable floor space was recorded in all locations surveyed by the Polish Bank Association. The highest increases were recorded in Poznań, Białystok and Kraków – 4.87% and 3.71%, respectively. and 3.46 percent
The average transaction price in Warsaw in the second quarter of 2021 was PLN 10,000. PLN 224 per square meter and was higher by 1 percent. compared to the value recorded in the previous quarter. Average price increases exceeding 1% were recorded in Wrocław and Gdańsk (1.8% and 1.63%). The lowest price increase was registered in Łódź, only by 0.25 percent.
High sales of housing loans is probably one of the sources of bankers’ optimism, which is visible in the Pengab banking climate index prepared by the Polish Bank Association and Kantar. The August reading of this indicator was also published on Wednesday. It amounted to 24.4 points and was higher than the July one by 10.9 points.
– In August, there was an increase in the dynamics of customer activity in the banking market. The consumer and housing loan market is an exception, where we observe the influence of seasonal factors. A significant month-on-month increase was recorded in the case of customer activity in the deposit market. August also saw an improvement in the reading of both three-month and six-month forecasting indices. However, macroeconomic forecasts for the economic situation of enterprises, households and the country’s economy showed a decline for another month, said Marcin Idzik from Kantar during the Wednesday conference.
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